Ares Management Q2 Earnings Meet Estimates, AUM Rises Y/Y

Net income attributable to the company was $150.6 million, up from $137.1 million in the year-ago quarter.

ARES’ Revenues & Expenses

The company's total revenues of $1.26 billion missed the Zacks Consensus Estimate of $1.32 billion by 4.2%.  This compares to year-ago revenues of $1.05 billion.

Management fees rose to $1.02 billion from $900.6 million in the prior-year quarter. Carried interest allocation declined to $249.9 million from $323.9 million, while incentive fees increased to $42.8 million from $23.1 million. Administrative, transaction and other fees rose to $116.1 million from $91.6 million.

Total expenses increased 3.7% year over year to $1.18 billion from the year-ago quarter. The increase was primarily driven by higher compensation and benefits as well as general, administrative and other expenses.

Ares Management’s AUM Balance

As of June 30, 2026, total assets under management (AUM) were $671.3 billion, up from $565.3 billion a year earlier. Fee-paying AUM increased to $409.9 billion from $343.9 billion in the prior-year period.

During the quarter, the company raised $36.4 billion in capital, generated $34.4 billion in net inflows and deployed $35.9 billion.

Ares Management’s Capital Distribution Update

The company announced a quarterly cash dividend of $1.35 per share of its Class A and non-voting common stock, payable Sept. 30, 2026, to shareholders of record as of Sept. 16, 2026.

Our Viewpoint on Ares Management

Ares Management continues to benefit from strong AUM growth across fee-paying and perpetual capital platforms, supported by steady capital inflows and strategic acquisitions such as BlueCove and GCP International. However, softer revenue relative to expectations and higher operating expenses are likely to remain near-term headwinds.

Currently, the company carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of ARES Peers

Invesco’s IVZ second-quarter 2026 adjusted earnings of 71 cents per share surpassed the Zacks Consensus Estimate of 67 cents. The bottom line surged 97.2% from the prior-year quarter.

IVZ’s results primarily benefited from an increase in adjusted revenues and substantial growth in the AUM balance. Record net long-term inflows also supported the quarterly results. However, an increase in adjusted expenses was a headwind.

SEI Investments Co.’s SEIC second-quarter 2026 adjusted earnings per share of $1.66 surpassed the Zacks Consensus Estimate of $1.45. The bottom line reflected a rise of 38.3% from the prior-year quarter.

SEIC's results were aided by higher revenues and a rise in AUM. However, higher expenses acted as a spoilsport.

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